It’s a harsh truth that a Lightwater residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Lightwater property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Lightwater will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Lightwater with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Lightwater can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lightwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold owner of a 2 bedroom flat in Lightwater being sold with a lease of a few days over 72 years left. Ethan on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Dr U Green who, having purchased a ground floor apartment in Lightwater in March 2007. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical premises in Lightwater with a long lease were valued about £275,000. The average amount of ground rent was £65 collected monthly. The lease finished in 2094. Taking into account 68 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
In 2009 we were contacted by Dr R Roux who, having moved into a recently refurbished flat in Lightwater in April 1996. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Lightwater with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected every twelve months. The lease expired on 2 March 2083. Having 57 years remaining we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.